Standard Chartered has launched its sustainable finance variants of borrowing base trade loans (BBTL), a secured revolving credit facility structured to meet the specific financing requirements of businesses, especially those in the commodity sector.
The solution will be available in the US, UK, UAE, South Africa, Singapore and Hong Kong, with further market launches expected in the future.
The borrowing base trade loan allows businesses to obtain financing against a diverse pool of collateral, typically cash, inventory, or receivables, helping them to manage their working capital more effectively.
The financing amount is directly tied to the borrowing base and varies according to the client’s needs. This structure allows clients to consolidate multiple transactions under a single loan, simplifying their trade financing and leveraging their existing assets for secure and efficient funding.
“By integrating sustainability variants into our BBTL solution, we are helping to empower our UAE clients to adopt more sustainable practices. This aligns with our commitment to offering finance to help facilitate our clients’ transition towards more sustainable business practices,” said Syed Khurrum Zaeem, Head, Transaction Banking, Africa & Middle East, Standard Chartered.
The sustainable finance variants of the BBTL integrate environmental, social and governance (ESG) criteria into the financing process. These variants include recognition of facilities that support trade of eligible materials within the applicable borrowing base.
The sustainability-linked variants offer differential pricing for companies demonstrating a commitment to, and delivery of, material and ambitious sustainability-related key performance indicators (KPIs) and associated targets.
As part of its continued efforts to expand its sustainable finance product suite, Standard Chartered also recently launched a sustainable trade loan for financial institutions and an ESG-linked cash account.
